Rare Indian coins as an alternative investment asset

“Money is needed to make more money” as the saying goes, actually stands true to investment in coins. Numismatics is fast gaining attraction as an alternate investment and an asset class that is capable of giving equal or even higher returns in comparison to other available asset classes. Multiple auction houses now bringing coins under hammer is a testimony to this asset being seriously viewed as an alternate investment by seasoned investors.

What gives coins a good value?

One of the most important factors that makes coins a good investment option is the availability. It is not a clandestine fact that there is limited availability to the coins. We all know that the constrained supply of a product has an influence on the selling price that it demands. This makes the coins a good option for investment. With the growing demand and the number of people showing interest, the return on investment is bound to see an exponential growth.

Entry point into this segment can be as low as Rs 2,000. Contrary to the notion, the price of commemorative coins that get issued by the government mint can cost only few thousands. This makes it highly affordable. Since the commemorative coins are issued in a limit, the selling price grows with age, design and the character or event it gets dedicated to. It means that this option is within reach to most of the Indian populace.

ARM : Three points that impact the coin price (Age, Rarity and Metal)

Age

The age of the coin impacts the price. With a long standing history, the Indian coins can date back to 2500 years. There is a mention of coins even in the Vedas and the Indian coinage has a remarkable global demand.

Rarity

Owing to the age, Indian coins are rated as rare amongst the rare and thus makes these highly valuable.

Metal

The older coins were made of various metals. Use of gold, silver, copper was in abundance. The metal that the coin was minted in also adds to the value.

Immense historical events

India has probably seen the highest number of rulers in global history. From small local kingdoms to large empires established by both Indian and foreigners who invaded the land, each issued the coins under their reign. From the Macedonian ruler Alexander to Chandragupta Maurya, Ashok, Mughals and the British, the coin minting has been an evidence to all the historical events in the subcontinent. This makes the Indian coins even more special and thus making them even more valuable.

Apart from the large empires, there have umpteen number of small monarchies and realms that issued coins. Each of these coins since have historic value and even highly limited availability make these worthwhile as an investment.

Extensive diversity

The variety of Indian coins is not limited to the historic value or the metallurgy alone. Various other aspects like denominations, religions that originated in India make the investment much more diverse and valuable.

As a numismatic, I feel that the coin collection is not just a hobby that aids satisfaction of owning a piece of history but even a serious investment opportunity that helps both in diversification of portfolio and facilitates growth of the investments.